Tata Communications shares in focus after Q4 profit jumps over 3x to Rs 1,040 crore on strong digital growth

Tata Communications shares will be in focus on Wednesday after the company reported a more than three-fold rise in net profit for the fourth quarter ended March 31, 2025. The net profit surged 223.6% year-on-year (YoY) to Rs 1,040.5 crore, supported by strong growth in its digital services business.

In the same quarter last year, the company had reported a profit of Rs 321.5 crore. Revenue from operations rose 6.1% YoY to Rs 5,990.4 crore, up from Rs 5,645.1 crore in Q4 of FY24.

EBITDA for the quarter increased 4.2% to Rs 1,122.1 crore, compared to Rs 1,077.1 crore last year. However, the EBITDA margin declined slightly to 18.7% from 19.1% in the year-ago quarter.


The company said all parts of its digital fabric offering recorded strong double-digit growth. For the full financial year, consolidated revenue grew 11.2% to Rs 23,109 crore. The data services segment crossed Rs 19,000 crore in revenue, registering a 13.7% YoY growth.

The board has recommended a final dividend of Rs 25 per share (250% on a face value of Rs 10) for FY25. The dividend will be paid after shareholder approval at the upcoming annual general meeting.

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AS Lakshminarayanan, MD and CEO, Tata Communications, said, "Our continued investments across the full stack of our digital fabric — network, cloud, security, IoT, and our interaction fabric — are now translating into stronger customer relevance and high double-digit growth of digital revenues, bringing this vision to life.”

“Today, digital revenues comprise nearly 50% of our portfolio, reflecting the strength of our strategy and execution. Our differentiated offerings continue to receive recognition from industry analysts, establishing us as leaders across domains," he added.

Tata Communications shares price target

As per Trendlyne data, the average target price of the stock is Rs 1,851, which shows an upside of 16% from the current market prices. The consensus recommendation from 9 analysts for the stock is a 'Buy'.

Tata Communications shares price performance

On Tuesday, the company’s shares closed at Rs 1,597.8 on the BSE, up 1.5%, while the Sensex rose 0.24%. The stock is down 11% in the past six months but has gained nearly 30% over the last two years. Its current market capitalisation is Rs 45,538 crore.

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